CHAPTER 1 INTRODUCTION TO STUDY

STUDY OF CONSUMER BEHAVIOUR TOWARDS LIFE INSURANCE PRODUCTS

When faced with an unexpected accident, we feel need of security that wont instigate us to beg for money at the eleventh hour. Any kind of protection or net safety is welcomed rather than having nothing. Insurance in the simplest term is that you pay a lump sum to get leverage or a protection against an incident of a large magnitude so when the unexpected misfortune is encountered, the insurance company can step in helping you out to sail through dirt. Insurance is a form of risk management primarily used to hedge against the risk of a

contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount to be charged for a certain amount of insurance coverage is called the premium. Risk management, the

practice of appraising and controlling risk, has evolved as a discrete field of study and practice.

The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated. . In words of Chief Justice Tindal, Insurance is a contract in which a sum of money is paid by the assured in consideration of the insurer's incurring the risk of paying larger sum upon a given contingency. In its legal aspects it is a contract whereby one person agrees to indemnify another against a loss which may happen or to pay a sum of money to him on the occurring of a particular event. All contracts of insurance (except marine insurance) may be verbal or in writing, but practically contracts of assurance are included in a document.

Characteristics of insurance
Risks which can be insured by private companies typically share seven common characteristics:1. Large number of similar exposure units: Since insurance operates through pooling

resources, the majority of insurance policies are provided for individual members of large classes, allowing insurers to benefit of the law of large numbers in which predicted losses are similar to the actual losses. Exceptions include Lloyd's of London, which is famous for insuring the life or health of actors, sports figures and other famous individuals. However, all exposures will have particular differences, which may lead to different premium rates. 2. Definite loss: The loss takes place at a known time, in a known place, and from a known cause. The classic example is death of an insured person on a life insurance policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion. Other types of losses may only be definite in theory. Occupational disease, for instance, may involve prolonged exposure to injurious conditions where no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information, could objectively verify all three elements. 3. Accidental loss: The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss should be pure, in the sense that it results from an event for which there is only the opportunity for cost. Events that contain speculative elements, such as ordinary business risks or even purchasing a lottery ticket, are generally not considered insurable. 4. Large loss: The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer will be able to pay claims. For small losses these latter costs may be several times the size of the expected cost of losses. There is hardly any point in paying such costs unless the protection offered has real value to a buyer. 5. Affordable premium: If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting premium is large relative to the amount of protection offered, it is not likely that the insurance will be purchased, even if on offer. Further, as the accounting profession formally recognizes in financial accounting standards, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer. If

there is no such chance of loss, the transaction may have the form of insurance, but not the substance 6. Calculable loss: There are two elements that must be at least estimable, if not formally calculable: the probability of loss, and the attendant cost. Probability of loss is generally unempirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim. 7. Limited risk of catastrophically large losses: Insurable losses are ideally independent and non-catastrophic, meaning that the losses do not happen all at once and individual losses are not severe enough to bankrupt the insurer; insurers may prefer to limit their exposure to a loss from a single event to some small portion of their capital base. Capital constrains insurers' ability to sell earthquake insurance as well as wind insurance in hurricane zones. In the US, flood risk is insured by the federal government. In commercial fire insurance it is possible to find single properties whose total exposed value is well in excess of any individual insurer's capital constraint. Such properties are generally shared among several insurers, or are insured by a single insurer who syndicates the risk into the reinsurance market 8. Capital constraint. Such properties are generally shared among several insurers, or are insured by a single insurer who syndicates the risk into the reinsurance market

PRINCIPLES OF INSURANCE

Basic principles of insurance:The following are the basic essentials 'or requirements of insurance irrespective of the type of insurance concerned. 1. Utmost good faith All types of contracts of insurance depend upon the contracts of utmost good faith. Both parties (insurer and the insured) in the contract must disclose all material facts for the benefit of each other. False information or non-disclosure of any important fact makes the contract avoidable. So the conditions to show utmost good faith are very strict on the part of the insured. 2. Insurable Interest The insured must possess an insurable interest in the object insured. It may be defined as a financial interest in the subject matter of contract. The presence of insurable interest is a legal requirement. So an insurance contract without the existence of insurable interest is not legally valid and cannot be claimed in a Court. The object of this principle is to prevent insurance from becoming a gambling contract. 3. Principle of indemnity All types of contracts except life and personal accident insurance are contract of indemnity. According to them, the insurer undertakes to indemnify the insured against a loss of the subject matter of insurance due to insured cause. In life assurance the question of loss and, therefore, of its indemnification does not rise. Because the loss of life cannot be estimated in term of money. The principle of indemnity is based on the idea that the assured in the case of loss only shall be compensated against the actual total loss. But if no event happens, the insured has not to receive any 6

amount, so in this case the premiums paid by him become the profit of the Insurer4. Doctrine of subrogation This principle applies to the contract of indemnity only i.e. marine and fire. It lays down a principle which is quite equitable. According to this doctrine, where a loss occurs and the insurer pays as for a total loss, he is entitled to all the rights and remedies which the insured has against a third party in respect of loss so paid for. It prevents the insured being indemnified from two sources in respect of the same loss. Suppose A has damaged B is motor car negligently. If he pays B is loss in full. B cannot collect the same from the insurance company. On the other hand if B applied to his insurance company for indemnity under his policy, he will not be permitted to collect the damages from A. In the latter case the insurance company will be entitled to collect that amount. 4. Doctrine of subrogation This principle applies to the contract of indemnity only i.e. marine and fire. It lays down a principle which is quite equitable. According to this doctrine, where a loss occurs and the insurer pays as for a total loss, he is entitled to all the rights and remedies which the insured has against a third party in respect of loss so paid for. It prevents the insured being indemnified from two sources in respect of the same loss. Suppose A has damaged B is motor car negligently. If he pays B is loss in full. B cannot collect the same from the insurance company. On the other hand if B applied to his insurance company for indemnity under his policy, he will not be permitted to collect the damages from A. In the latter case the insurance company will be entitled to collect that amount 5. Doctrine of proximate cause This principle is found very useful when the loss occurred due to series of events. It means that in deciding whether the loss has arisen through any of the risks insured against, the proximate or the nearest cause should be considered. To take an illustration in one case where a policy holder sustains an accident while hunting. He was unable to walk after the accident and as a result of lying on wet ground before being picked up, he suffered pneumonia. There was an unbroken change of cause between the accident and the death, and the proximate cause of the death, therefore, was the accident and not the pneumonia.

6. Cancellation

Both parties have right to cancel the policy before its expiry date. The period of .the policy comes to an end on the cancellation of policy. So the protection provided by the insurer to the insured stops from the date of such cancellation. The premium received by the insurance company is also returnable to the insured. 7. Attachment of risk Without the attachment of definite risk to the policy, the contract of insurance cannot be in force. So in this case the consideration fails and the premium received by the insurance company must be returned. 8. Mitigation of loss When the event insured against takes place, the policy holder must do every thing to minimize the loss and to save what is left. This principle makes the insured more careful in respect of this insured property. 9. Arbitration Most fire and accident insurance policies contain an arbitration clause which provides for referring' to differences to an arbitration. The arbitrator is to be appointed in writing by the parties in difference. The object of this clause is to reduce litigation.

CHAPTER 2

COMPANY PROFILE

Vision:To be a world class provider of financial security to individuals and corporate and to be amongst the top three private sectors life insurance companies in India.

Mission:To be the first preference of our customers by providing innovative, need based life insurance and retirement solutions to individuals as well as corporate. These solutions will be made available by well-trained professionals through a multi channel distribution network and Superior technology. Our endeavor will be to provide constant value addition to customers throughout their relationship with us, within the regulatory framework. We will provide career development opportunities to our employees and the highest possible returns to our shareholders. Values:Integrity: Honesty in every action. Commitment: Deliver on the promise Passion: Energized action Seamlessness: Boundary less in letter & spire Speed: One step ahead always

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ADITYA BIRLA GROUP PROFILE

A US $40 billion corporation, the Aditya Birla Group is in the League of Fortune 500. It is anchored by an extraordinary force of over 133,000 employees, belonging to 42 different nationalities. The Group has been ranked Number 4 in the Global 'Top Companies for Leaders' survey and ranked Number 1 in Asia Pacific for 2011. 'Top Companies For Leaders' is the most comprehensive study of organizational leadership in the world conducted by Aon Hewitt, Fortune Magazine and RBL (a strategic HR and Leadership Advisory Firm Over 53 per cent of its revenues flow from its overseas operations. The Group operates in 36 countries Australia, Austria, Bangladesh, Brazil, Canada, China, Egypt, France, Germany, Hungary, India, Indonesia, Italy, Ivory Coast, Japan, Korea, Laos, Luxembourg, Malaysia, Myanmar, Philippines, Poland, Russia, Singapore, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Tanzania, Thailand, Turkey, UAE, UK, USA and Vietnam. Globally, the Aditya Birla group is: A metals powerhouse, among the worlds most cost-efficient aluminum and copper producers. Hindalco-Novelis is the largest aluminum rolling company. It is one of the three biggest producers of primary aluminium in Asia, with the largest single location copper smelter. No.1 in viscose staple fibre. No.1 in carbon black

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The fourth-largest producer of insulators The fifth-largest producer of acrylic fibre Among the top 10 cement producers Among the best energy-efficient fertiliser plants The largest Indian MNC with manufacturing operations in the USA

In India: A top fashion (branded apparel) and lifestyle player The second-largest player in viscose filament yarn The largest producer in the chlor-alkali sector Among the top three mobile telephony companies A leading player in life insurance and asset management Among the top two supermarket chains in the retail business Among the top 10 BPO companies Revenues of Rs. 1,50,000 crore

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not come in the way of the need to keep learning afresh, to keep experimenting. Beyond business - The Aditya Birla Group: Works in 3,000 villages. Reaches out to seven million people, annually through the Aditya Birla Centre for Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla. Focuses on healthcare, education, sustainable livelihood, infrastructure and espousing social reform in India, Asia, Egypt, Philippines, Thailand, Laos, Indonesia, Korea and Brazil In India: Our Group runs 42 schools, which provide quality education to 45,000 children. Of these, over 18,000 children receive free education. Its 18 hospitals tend to more than a million villagers.

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In line with its commitment to sustainable development, has partnered with the Columbia University in establishing the Columbia Global Centres Earth Institute in Mumbai. To embed CSR as a way of life in organizations has set up the FICCI Aditya Birla CSR Centre for Excellence, in Delhi.

Transcending the conventional barriers of business because we believe it is our duty to facilitate inclusive growth.

Vision:
The name Aditya Birla evokes all that is positive in business and in life. It exemplifies integrity, quality, performance, perfection and above all character. Our logo is the symbolic reflection of these traits. It is the cornerstone of our corporate identity. It helps us leverage the unique Aditya Birla brand and endows us with a distinctive visual image. Depicted in vibrant, earthy colors, it is very arresting and shows the sun rising over two circles. An inner circle symbolizing the internal universe of the Aditya Birla Group, an outer circle symbolizing the external universe, and a dynamic meeting of rays converging and diverging between the two. Through its wide usage, we create a consistent, impact-oriented Group image. This undoubtedly enhances our profile among our internal and external stakeholders. Our corporate logo thus serves as an umbrella for our Group. It signals the common values and beliefs that guide our behavior in all our entrepreneurial activities. It embeds a sense of pride, unity and belonging in all of our 133,000 colleagues spanning 36 countries and 42 nationalities across the globe. Our logo is our best calling card that opens the gateway to the world. Dr. Pragnya Ram as the Chief Custodian of the Aditya Birla Group logo The Aditya Birla Group, India's first multinational corporation, traces its origins back to the tiny village of Pilani in the Rajasthan desert, where Seth Shiv Narayan Birla started cotton trading

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operations in 1857. Today, the Group's footprint extends to 36 countries and its revenues are US$40 billion

Major Subsidiaries and Associates:

Aditya Birla Nuvo AV Cell, Canada AV Nackawic, Canada Grasim Industries Limited

Hindalco Industries Limited UltraTech Cement Limited Aditya Birla Minacs Worldwide Limited Samruddhi Cement Novelis Inc. Aditya Birla Minerals Aditya Birla Chemicals (India)Limited Utkal Alumina International Limited DahejHarbour& Infrastructure Limited Aditya Birla Science and Technology Company Limited Tubed Coal Mines Limited Birla Sun Life Asset Management Company Limited Aditya Birla Finance Limited Aditya Birla Money Mart Limited Aditya Birla Money Limited Aditya Birla Insurance Brokers Aditya Birla Capital Advisors Private Limited

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 Idea Cellular Limited Madura Fashion & Lifestyle Essel Mining and Industries Aditya Birla Retail Thai Rayon Indo Thai Synthetics Thai Acrylic Fibre Thai Carbon Blac Aditya Birla Chemicals (Thailand) Limited Birla Laos Pulp and Plantations Company Limited Indo Phil Textile Mills

Indo Phil Cotton Mills Indo Phil Acrylic Manufacturing Corporation Pan Century Surfactants Inc. PT Indo Bharat PT Elegant Textile IndustryPT Sunrise Bumi Textiles PT Indo Liberty Textiles PT Indo Raya Kimia

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SUNLIFE FINANCIAL
Sun Life Financial Inc. and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. Sun Life Financial Inc. is a leading player in the life insurance market in Canada. i. ii. Vision: - Were committed to making a difference in the communities in which we work and live around the world. Mission: - Our mission is to help customers achieve lifetime financial security. Our vision is to be an international leader in protection and wealth management. Our values are the foundation of our day-to-day business operations. iii. iv. v. Integrity: - We are committed to the highest standards of business ethics and good governance. Engagement: - We value our diverse, talented workforce and encourage, support and reward them in contributing to the full extent of their potential. Customer Focus: - We provide sound financial solutions for our customers and always work with their interests in mind.

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vi. vii.

Excellence: - We pursue operational excellence through our dedicated people, our quality products and services, and our value-based risk management. Value: - We deliver value to the customers and shareholders we serve and to the communities in which we operate.

OUR BUSINESS
At Sun Life, our business is focused on helping customers achieve lifetime financial security. From Toronto to Tianjin; our goal is to help ensure lifes brighter for the millions of people who already trust our products and services for their financial well-being. We provide a range of protection and wealth management products and services in key markets, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. Read more about Sun Lifes global presence. We have a long history in financial services. Experience, financial strength and our global vantage point are a powerful combination in all our markets. They help us provide our clients with relevant and smart life insurance, health, dental and disability insurance, education savings, medical insurance, investing and retirement planning services, annuities, and a host of other financial security products, specifically designed for various life stages and goals. But were committed to more than great products. We are also committed to operating in a socially responsible way and acting as good corporate citizens everywhere we live and do business

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CORPORATE GOVERNANCE
Our business is based on trust. Trust in our products and services. Trust that well guide the company in a way that upholds the confidence of our customers, shareholders and business partners around the world. Building trust and maintaining our reputation depends on the decisions we make, the values we maintain, our leadership strength and the personal integrity of each and every employee. We take seriously the responsibility inherent in helping our customers secure their financial futures. Its why weve developed and adhere to guidelines for strong and consistent governance throughout the organization. We have a strong and independent Board of Directors, who regularly reviews its corporate governance processes and practices. Our risk management program includes disciplined processes to mitigate operational, market and other risks. Its all part of good corporate governance. And its at the heart of what we do every day. Ethics, integrity and our Code From our earliest beginnings, ethics and integrity have been cornerstones of the way we do business. They are part of why we have such a strong reputation, and why our employees are proud to work for us. 1. Share Holding Pattern: In Birla-Sun Life, the two companies are having shareholding pattern as follows: 74 % - Aditya Birla Group 26 % - Sun Life Financial Group 2. The group has 3 businesses: Mutual Funds Wealth Management Life Insurance

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3. Many Ones with Birla Sun Life Insurance: BSLI is a company that has a very unique contribution in the history of Insurance sector. The company not only has varying plans and funds, rather also is a pioneer in many aspects. These pioneering features of BSLI are as follows: 4. Free Look Period: BSLI offers its policyholders with a free look period of 15 days. Client gets freedom to have an in-depth look over all the terms and conditions regarding his/her lifeinsurance policy. If he finds policy not worth opting for, he can also return the policy, but at BSLI, co. people ensures this not to happen.

5. Bancassurance: BSLI pioneered Bancassurance in India. Bancassurance means to include Banks as one of the distribution channels with the company. BSLI is the first company, which realized that banks, with their huge customer base and strong customer loyalty, are a readymade platform to acquire new business on a more cost effective and sustainable basis. 6. Unit Linked Life Insurance Plans: BSLI was the first in India to introduce Unit Linked Plans. A ULIP is an auspicious coming together of security from life 7. Insurance and earnings from investment. Which means, apart from securing the future they offer efficient returns. These plans provide the customer with a certain number of units, in the same way as a mutual-fund holder gets units. ULIPs offer market-linked returns to policyholders. Sales Illustrations: BSLI is the first company to introduce Sales Illustrations in the Insurance Industry. Sales people of BSLI give demonstrations of fund Performance on two points of projections i.e. on 6% and 10%. Now IRDA has also made it mandatory to have sales illustrations. BSLIs has launched Century SIP, a unique systematic investment plan offering an opportunity to create wealth with as little as Rs 1000 per month plus a life insurance cover of up to 100 times the monthly installment.This plan comes along with free term insurance for an individual up to 55 years

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of age.

The life insurance cover comes at no extra cost to the investor. The cover is hassle free.

The investor need not go thru any medial test to avail of the life cover. All an investor needs to do is enroll for CSIP & sign a Declaration of Good Health. In case of unfortunate demise of investor the insurance claim will be directly paid to the nominee by the insurance company (Birla Sun Life Insurance Company).Announcing the launch of Century SIP, Anil Kumar, CEO, and Birla Sun Life MF said, This offering touches all aspects of an investors financial planning needs. We wish to encourage the investment habit among investors by providing them life insurance cover. Insurance cover to the investor would continue even after the SIPs minimum maturity tenor of 3 years. Any individual between 18 to 46 years of age may invest in this plan. Investment in this plan may be made through Electronic clearing system (ECS), direct debits or post dated cheques.Others: Some other Ones with BSLI are: 1st to issue daily NAVs of funds for better transparency. 1st to have a distinct CRISIL benchmark. 1st to disclose portfolio on a monthly basis. Policyholders can view their policy details online; they can be accessed from BSLI website using your unique password. Out of every 100 claims intimated to BSLI 98.28 stands cleared. Also the average Turn around Time (TAT): From the receipt of the last requirement till dispatch of cheque is 5 days and From intimation of claim till its decision & dispatch of cheque is 36 days.

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ING VYSYA LIFE INSURANCE PROFILE

NG was founded in 1991 by a merger between Nationale-Nederlanden and NMB Postbank Group. During the past years ING has become a multinational with diverse international activities.

The roots of ING can be traced to the insurers De Nationale Levensverzekering Bank and De Nederlanden van 1845 and to the public bank services such as De Rijkspostspaarbank and De Postcheque- and Girodienst, as well as to the Nederlandsche Middenstands Bank. These are the legal predecessors of the 'founding fathers' of ING: Nationale-Nederlanden and NMB Postbank Group. The oldest legal predecessor is the Kooger Doodenbos from Koog in the province of North Holland, founded in 1743. During that period many regional funds were created to insure people from certain communities, professions, widows and orphans against bad fortune. Many of these small organisations were taken over by larger nationwide operating companies such as De Nationale Levensverzekering Bank. The fire insurers were the first to undertake international activities, starting in the Dutch Indies, but later also in the rest of Asia and in America. This created the foundation for

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the international company ING is today. The pillarisation of Dutch society that separated Protestants, Catholics and Socialist/Liberals is also visible in the ING history. Banks with a Catholic or Protestant signature merged into the NMB and became part of ING. Professional groups also united in the banking business. Organisations such as the Credietbank for Koffiehuis en Restauranthouders (pubs and restaturants), the Bank voor den Diamantenhandel (diamond trade) and the Vakbondsspaarbank (Union Savings Bank) were involved in several mergers and acquisitions and finally became part of ING Bank and therefore part of the ING family. The founding of ING as one company was started in 1990 when the legal restrictions on mergers between insurers and banks were lifted in the Netherlands. This prompted insurance company Nationale-Nederlanden and banking company NMB Postbank Groep to enter into negotiations. The merger into Internationale Nederlanden Groep took place in 1991. The market soon abbreviated the name to I-N-G. The company followed suit by changing the statutory name to ING Groep N.V. Since 1991, ING has developed from a Dutch company with some international business to a multinational with Dutch roots. This was achieved through a mixture of organic growth, such as the creation of ING Direct from scratch, as well as various large acquisitions.

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The top of the company pedigree above shows the 'founding fathers' of ING; at the bottom you will find the companies that ING has acquired since its establishment. In addition, companies were bought that have in the meantime been sold again. The first large acquisition took place in 1995, when ING took over Barings Bank. This acquisition increased the brand recognition of ING around the world and strengthened its wholesale banking presence in the emerging markets. Some of Barings activities were integrated in ING's business units, while other parts were closed down or sold. In 1999, ING acquired the German BHF-Bank, but this Frankfurtbased merchant bank was divested in 2004. Cane bankers also played an important role in ING's history. It had been part of NMB since 1966, but in 2004 ING decided to sell Cane. And then there was Life of Georgia. This insurance company was acquired by Nationale-Nederlanden in 1979, resulting in a considerable increase in activities in the US. Via Life of Georgia, the activities in Asia expanded considerably. However in 2004, ING as a group had become well-established in both regions and Life of Georgia was sold. In 1956 an ING predecessor (de Nationale) bought de TielUtrecht. This significantly increased the size of the company. But it was sold again in 1999 to De Goudse. Other acquisitions, such as the Belgian Bank Brussels Lambert, strengthened the Group's presence in

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the Benelux. In addition, the activities in de United States were doubled as a result of organic growth and the acquisition of Equitable of Iowa, ReliaStar, Aetna Financial Services and merchant bank Furman Selz. ING is also active in other parts of the world. In 2001, ING acquired a majority interest in the Polish Bank Slaski and entered the Indian life insurance market through ING Vysya Life Insurance, a joint venture in Bangalore..

BIRLA SUN LIFE INSURANCE PLANS

1. CLASSIC LIFE PLAN
This plan gives you complete control over your investments by directing your premiums to our range of 10 investments funds along with a range of rider options to give your family the security of financial protections. Features: The plan is a unit linked, non-participating plan. This plan has the option of 10 investment fund with the flexibility to allocate the premiums in varying proportions into the different Fund Option. Top up facility is there. The minimum amount of top ups is 10000. The plan offers further benefits in the form of additional units, which will be added to the Fund value at the end of the 10th policy year.

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There is high liquidity in the form of Partial Withdrawals and Surrender Benefits. Death Benefits, which will be higher of the Fund value or Sum Assured, reduced by the applicable partial withdrawals.

Working of BSLI Classic Life Plan:

1. You select the saving date that suits your retirement goals. 2. You select the basic premium you want to plan every year. 3. You will receive basic sum assured which is the minimum death benefit payable on the demise of the life insured. The Basic Sum Assured is automatically determined as your basic premium multiplied by: The higher of 10 or the number of yrs to attain age 70 divided by 2, for entry age s below 45 or The higher of 7 or the number of years to attain age 70 divided by 4, for entry ages 45 above

4. You select the number of years you want to pay your premiums, and select your pay term from options of 5-pay, 10-pay, 15-pay, 20-pay to saving date. 5. You have the option to choose Enhanced Sum Assured to increase the financial security for your life cover over and above the basic sum assured at a nominal cost. 6. You have the options to choose from our range of riders and customize the security of your familys financial future. BENEFITS

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1. Death benefit: - in case of unfortunate demise of the life insured while the policy is in effect, the nominee will receive the greater of either the fund value or the basic sum assured, reduced for partial withdrawals as follows. Before the life insured attains the age of 60, the basic sum assured on demise is reduced by partial withdrawals made in preceding 2 yrs. Once a life insured attains the age of 60, the basic sum assured payable on demise is reduced by all partial withdrawals made from age 58 onwards. In addition the nominee will also receive the enhanced sum assured, if any. 2. Enhanced sum assured: based on your needs you can increase the life cover and above the basic sum assured by opting for the enhanced sum assured at inception. You can choose any amount of enhanced sum assured, subject to a minimum of Rs 50000 and not exceeding basic sum assured. Whole life cover: you enjoy the life cover for your ensuring the long term financial security for your loved ones. 1. Surrender Benefits: in case of emergency funds requirements, you can surrender your policy after the completion of 5 policy years and receive the fund value at that time. 2. Top up premium: if you wish to increase your investment in the policy, you have the freedom to invest additional amounts to your premiums as top up premium any time during the policy term as long as all due policy premiums have been paid. The minimum top up premium is rs 5000 and your basic sum assured will automatically increase. 3. Guaranteed Additions: your policy enjoys a boost in the form of additional units. 4. Partial withdrawals: you can make unlimited partial withdrawals to meet any financial emergencies any time after 5 policy years. The minimum amount of partial withdrawals is rs. 5000. there is no maximum limit but you are required yo maintain a minimum fund value of rs. 25000 + any top up premiums paid in the previous 5 years. 5.

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The Self-Managed Option gives you complete access to invest your premiums in our well established suite of 10 Investment Funds, ranging from 100% debt to 100% equity. You also enjoy full freedom to switch from one Investment Fund to another, as per your changing requirements. Choose from our range of 10 Investment Funds, to suit your risk appetite Allocate your savings in the proportion of your choice Change your allocations as per your changing requirements Plan Summary

Policy Term Entry Age Savings Date Basic Premium Pay Term Top-up Premium Enhanced Sum Assured

Whole life 18 to 45 years 18 to 50 years 18 to 55 years 18 to 60 years To age 55 To age 60 To age 65 To age 70 Minimum Rs. 25,000 p.a. if paid annually Minimum Rs. 30,000 p.a. if paid monthly, quarterly or semiannually Short pay 5, 10, 15, 20 years To Savings Date Minimum Rs. 5,000 Minimum Rs. 50,000, subject to maximum of 30 years to Savings Date

Premium Payment Frequency Monthly, Quarterly, Semi-annually or Annually

2. BSLIS DREAM LIFE PLAN Unit Linked Insurance Plan

You work hard to provide your family the best of everything, along with saving for your retirement years. You wish for a plan that lets you live your golden years with the same comfort and lifestyle, without any compromises. Presenting the BSLI Dream Life Plan - a plan that suits your needs and gives you the freedom to live life confidently. This plan offers you: Guaranteed Savings Amount on the date of your choice Whole life cover

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Choice of Pay Term Enhanced financial security for your loved ones

How BSLI Dream Life Plan works: 1. You select the Guaranteed Savings Date that suits your retirement objectives. 2. You select the Basic Premium you want to pay every year. 3. You select the number of years you want to pay your premiums, and select your Pay Term from options of 5-Pay / 10-Pay / 15-Pay / 20-Pay / To Guaranteed Savings Date. 4. You will receive Basic Sum Assured which is the minimum death benefit payable on the demise of the life insured. The Basic Sum Assured is automatically determined as your Basic Premium multiplied by: > The higher of 10 or the number of years to attain age 70 divided by 2, for entry ages below 45; or > The higher of 7 or the number of years to attain age 70 divided by 4, for entry ages 45 and above 5. You have the option to choose Enhanced Sum Assured to increase the financial security for your loved ones. This increases your life cover over and above the Basic Sum Assured at a nominal cost. -You have the option to choose from our range of riders to further customise the financial security

Policy Term Entry Age Guaranteed Savings Date

Whole life 18 to 45 years To age 55 18 to 50 years To age 60 18 to 55 years To age 65 18 to 60 years To age 70

Minimum Rs. 12,000 p.a. if paid annually Basic Premium Minimum Rs. 15,000 p.a. if paid semi-annually Minimum Rs. 20,000 p.a. if paid quarterly Minimum Rs. 24,000 p.a. if paid monthly Short Pay 5 years Pay Term Short Pay 10, 15 or 20 years To Guaranteed Savings Date Minimum Rs. 50,000 Subject to a maximum of 30 years to Guaranteed Savings Date From entry age 30 From entry age 18 From entry age 18

Premium Payment Frequency Monthly, Quarterly, Semi-annually or Annually Enhanced Sum Assured

3. BSLI DREAM CHILD PLAN

In this policy, investment risk in investment portfolio is borne by the policyholder.

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In life there are some dreams like giving your child the best possible education, planning for their career or wedding or helping them start their life on an assured footing. And you would ideally like to guarantee this against any eventuality. Birla Sun Life Insurance brings its Dream Plans that can meet these needs and give you the confidence to live your life with freedom. Presenting the BSLI Dream Child Plan, a plan that gives you the guarantee of receiving your Guaranteed Savings Amount on the Guaranteed Savings Date chosen by you. What's more, you retain the freedom to keep pace with the ever changing world of your dreams for your child Features of this plan are: You choose the Guaranteed Savings Date that suits your savings objectives. You choose the premium amount you want to pay every year prior to your Guaranteed Savings Date. You are then guaranteed - To receive no less than the Guaranteed Savings Amount on the Guaranteed Savings Date; and - To enjoy a life cover of no less than the Basic Sum Assured throughout the policy term. You also have the freedom - To increase the financial security for your loved ones by choosing an Enhanced Sum Assured; and - To increase the protection under this plan by choosing additional riders; and - To meet any emergency fund requirements by making partial withdrawals or taking a policy loan Finally, you enjoy tax benefits under section 80C and section 10(10D) of the Income Tax Act, 1961 Plan at a glance Entry Age - Grand / Parent -child Guaranteed Savings Date Basic Premium 18 - 65 years, provided age on Guaranteed Savings Date is 75 or less 30 days - 17 years Child's age 18 - 27, subject to minimum of 10 policy years Minimum Rs. 12,000 p.a. if paid annually Minimum Rs. 15,000 p.a. if paid semiannually Minimum Rs. 20,000 p.a. if paid quarterly Pay Term Enhanced Sum Assured Minimum Rs. 24,000 p.a. if paid monthly Years to Guaranteed Savings Date Minimum Rs. 50,000 Not exceeding Basic Sum Assured 29

1. Guaranteed Savings Date: - the policy anniversary on which the Guaranteed Savings Fund is guaranteed to equal the Guaranteed Savings Amount and will then grow at 3% p.a. less policy charges. Once vested, the Guaranteed Savings Fund is the minimum value of your Fund Value payable on death or surrender guaranteed. Your options are the policy anniversary corresponding to your child's attained age 18 to 27. 2. Basic Premium: - the premium amount you commit to pay every year during the pay term. Your Basic Sum Assured and Guaranteed Savings Amount will be determined based on the premium amount you commit 3. Pay Mode: - you can pay in monthly, quarterly, semi-annual or annual installments. For monthly installments, two payments are required upfront at entry. Please ask your financial advisor for details about the range of convenient payment methods we offer.

Your Benefits:1. Guaranteed Additions: - in the form of additional units will be added to your policy: On 10 policy anniversary and on every 5 policy anniversary thereafter. Guaranteed Addition is 2.50% of the Basic Premiums paid in the last 60 months In addition on 11 policy anniversary and every policy anniversary thereafter. Guaranteed Addition is 0.25% of the average Fund Value in the last 12 months 2. Death Benefit: - in the unfortunate event the primary life insured dies while the policy is in effect, we will pay to the beneficiary the Basic Sum Assured. The policy will continue as long as the secondary life insured is alive. 3. Prior to the Guaranteed Savings Date Upon death of the primary life insured (grand / parent), we will pay the Basic Sum Assured plus Enhanced Sum Assured, if any and all future Basic Premiums in monthly installments starting from the next policy month Upon death of the secondary life insured (child), Guaranteed Savings Date and pay the Fund Value as on that date Upon the last death of either the primary or secondary life insured, we will terminate the policy and pay the Fund Value as on date of intimation of death plus the commuted value

30

Of all future Basic Premiums that are being paid by us. The commuted value is the sum of all future monthly Basic Premiums each discounted at 0.5% per month remaining until due 4. Starting from the Guaranteed Savings Date Upon death of the primary life insured (child), we will pay the Basic Sum Assured Upon the last death of either the primary or secondary life insured, we will terminate the policy and pay the Fund Value as on date of intimation of death Death benefit of the primary life insured shall never be less than 105% of total premiums paid to date (excluding any applicable rider premium and / or underwriting extras) less any previous partial withdrawals. (Upon death of the grand / parent, the mortality charges will cease until the Guaranteed Savings Date at which point mortality charges will start again based on the child's gender and then attained age. The Basic Premium we pay on your behalf is reduced to reflect the non-deduction of mortality charge and is sufficient to ensure the Guaranteed Savings Fund continues to grow as planned. 3. Surrender Benefit: - in case of emergencies, you can surrender your policy to us after the completion of five policy years and receive the Fund Value at that time. Prior to Guaranteed Savings Date, in situations where the primary life insured (grand / parent) is dead, the secondary life insured (child) can surrender the policy anytime after attaining age 18. 4. Maturity Benefit: - you will receive the Fund Value at maturity. 5. Guaranteed Savings Fund: - is your security. Starting on your Guaranteed Savings Date, all reference to the Fund Value in the Death, Surrender and Maturity Benefits above is replaced by higher of Fund Value or Guaranteed Savings Fund Partial Withdrawals: - You are allowed to make unlimited partial withdrawals any time after (a) five complete policy years or (b) secondary life insured attaining the age of 18, whichever is later. The minimum amount of partial withdrawal is Rs. 5,000. There is no maximum limit, but you are required to maintain a minimum Fund Value of Rs. 25,000.

31

Policy Discontinuance:Policy Discontinued for AP less than Rs. 25,000 For AP of Rs. 25,000 or more Service Tax and other levies, as applicable, will be extra and levied as per the extant tax laws. Only when specified and within stated limits, we may increase a particular charge at any time in the future. We, however, need to get prior approval from the IRDA before such charge increase is effective. Otherwise, all other charges in this policy are guaranteed to never increase during the tenure of the policy. Throughout the Policy Term, you are given a grace period of 30-days (15-days in case your premium is paid on a monthly basis) to pay the due premium. If we do not receive your full premium by the end of the grace period, we shall send you a reminder notice within 15 days to revive the policy by paying your due and unpaid premium or to choose to withdraw from the policy completely. If you do not pay your due and unpaid premiums within 30 days as stipulated in our notice you shall be deemed to have chosen the option to completely withdraw from the policy. Till this period, your policy as well as all insurance cover and charges will continue. During the first five policy years - should you completely withdraw from the policy, the insurance cover will cease and your fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. on compounding basis and the proceeds from this will be payable to you on the date corresponding to your fifth policy anniversary or the date the life insured dies, if sooner. The discontinuance charge is as follows:

Policy Discontinued In Policy Year 1 In Policy Year 2 In Policy Year 3 In Policy Year 4 In Policy Year 5

For AP less than Rs. 25,000 Lower of 20% of AP, 20% of FV, Rs. 3,000 Lower of 15% of AP, 15% of FV, Rs. 2,000 Lower of 10% of AP, 10% of FV, Rs. 1,500 Lower of 5% of AP, 5% of FV, Rs. 1,000 Nil

For AP of Rs. 25,000 or more Lower of 6% of AP, 6% of FV, Rs. 6,000 Lower of 4% of AP, 4% of FV, Rs. 5,000 Lower of 3% of AP, 3% of FV, Rs. 4,000 Lower of 2% of AP, 2% of FV, Rs. 2,000 Nil

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4. ING AASHIRVAD CHILD PLAN

What is ING Aashirvad all about? ING Aashirvad is a guaranteed child life insurance plan that pays out monies at critical milestones of your childs life like higher education, marriage, starting a business or any other goals that you would have planned for your child. In this plan the parent and child are the life insured/s during the policy term and once your childs future is adequately secured through the payouts, the benefit of long term insurance protection shifts to the child during the extended policy term. A customized 2 in 1 plan, ING Aashirvad not only guarantees the planning for your childs career, marriage etc. but also goes one step ahead and provides guaranteed long term Insurance protection foryour child. What are your Guarantees with ING Aashirvad? Guarantee 1:- Guaranteed Maturity Benefit as planned by you for your childs education, marriage etc. Guarantee 2:- Guaranteed Death Benefit on the life of the parent and the child. Guarantee 3:- Guarantee of policy continuance in the unfortunate event of the demise of the parent. Guarantee 4:- Guaranteed long term protection (30 years) for your child after the Guaranteed Maturity Benefits are paid. Key Benefits Guaranteed Maturity Benefit (GMB) The target amount that you want to save for your child is guaranteed on maturity and you can receive the GMB either as part staggered and part lumpsum (Option A) or as a single lumpsum payout (Option B). You can choose between one of these options and customize it to match with the critical milestones of your childs life. 33

The GMB option that you opt at inception of the policy cannot be changed during the Policy Term. Option A: - Part Staggered and Part Lumpsum: Under this option the GMB is payable as mentioned in the table below. When will you receive the payment? 4 year before Policy Maturity Date 3 year before Policy Maturity Date 2 year before Policy Maturity Date 1 year before Policy Maturity Date Policy Maturity Date Payouts (as a % of GMB) 7.5% 7.5% 10% 10% 65%

Option B: - Single Lumpsum Payout: Under this option the GMB is payable as a single lumpsum on the policy maturity date. There is also a guaranteed addition of 5% of GMB payable on the maturity date subject to all due premiums being paid. Note: The Guaranteed Additions are payable on maturity only for Option B and the same is not payable if policy acquires paid up value. Guaranteed Death Benefit Before the Policy Maturity Date In the unfortunate event of death of the parent during the policy term The death benefit (50% of the GMB) will be paid out. The GMB as planned for your child will continue and all the future Premiums payable under this Policy from the next Policy Year onwards shall be waived. In the unfortunate event of death of the child during the policy term The death benefit (2.50% of the GMB) and the Surrender Value (if applicable) will be paid out and the policy will be terminated. After the Policy Maturity Date (during the extended policy term of 30 years) In the unfortunate event of death of the child during the extended policy term, the death benefit (50% of the GMB) is paid out and the policy terminates. Note: - There is no life insurance cover for the parent once all the trenches of GMB are paid out.

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Rider Benefits You can further customize your policy by adding Accidental Death Benefit (ADB) or Accidental Death, Disability and Dismemberment Benefit (ADDD Benefit) riders. The riders can be attached only on the parents life till the end of the Premium Paying Term. Option A: - Part Staggered and Part Lumpsum: Under this option the GMB is payable as mentioned in the table below: All the above benefits at an affordable price. Read on The amount of premium is decided according to the age of the parent (primary life insured), Premium Paying Term and the Guaranteed Maturity Benefit (GMB). The monthly premium rates (in Rs) per 1000 Guaranteed Maturity Benefit for 10, 15 & 20 year Premium Paying Term for sample ages are as follows: Service Tax and Education Cess are levied as per applicable Tax Laws from time to time and the same is subject to changes in the Tax Laws in the future. The premium rates shown above do not incorporate the impact of Service Tax (inclusive of Education Cess). Monthly Premium Rate# (Rs) Age 30 35 40 45 50 Premium Paying Term 10 6.62 6.70 6.82 6.90 7.23 20 4.07 4.14 4.27 4.34 4.66 30 3.02 3.09 3.22 3.30 3.64

To enable you to pay less while saving more for your child, ING Life Insurance also offers you an additional discount on your premium rates for higher GMB. The high GMB discount per 1000 GMB is as per the following table:Guaranteed Maturity Benefit (in lakhs) 6 - 7.99 Annual High GMB Discount per 1000 of GMB (Rs.) 2.5

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8 - 9.99 10 11.99 12 13.99 14 15.99 16 17.99 18 & above Modal Factor

3 3.5 4 4.5 5 5.5

You may choose to pay your premiums annually, half yearly, quarterly and by the monthly mode. Following factors are applied to premium for different premium paying modes. For e.g. Mr. XYZ wants to target for a GMB of Rs. 800000 for his childs education and marriage after 20 years and his present age is 40 years and opts for Option A (part staggered and part lumpsum payouts). The premium Payment Term would be Policy Term (20 years) 5years = 15 years. Step 1:- How is his premium calculated?

The annual premium that he needs to pay for 15 years is calculated as follows:Monthly Premium rate per 1000 Guaranteed Maturity Benefit for his age of 40 years is Rs. 4.27. Annual Premium rate per 1000 Guaranteed Maturity Benefit is calculated as follows:Annual Premium rate per 1000 guaranteed Maturity Benefit is calculated as follows:Annual premium rate = monthly premium rate * modal factor =4.27 * 11.01 The premium rate per 1000 GMB for your age of 40 years is Rs. 46.99 Step 2:- What is the extra benefit for choosing a higher GMB?Since Mr. XYZ has opted for a higher GMB (Rs. 8, 00,000) he is entitled to a high GMB discount of Rs. 3/The Premium for Rs. 800000 GMB is calculated as below: Premium Rate per 1000 GMB = 9High GMB Discount -Premium Rate for Rs. 800000 GMB)/1000 * GMB = (46.99 3)/1000 X 800000 = Rs. 35,192/About Taxes

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This plan may entitle you to certain tax benefits on your premiums as well as on your guaranteed maturity value. U/s 80C of the Income Tax Act 1961 on your premiums U/s 10(10D) of the Income Tax Act 1961 on your maturity proceeds of the policy

Please note that tax benefits are subject to changes in Tax Laws and we would urge you to consult your tax advisor for specific tax related advice before you invest in this policy. Service tax and education cess as applicable from time to time will be additionally levied.

What are the other provisions available? Free look period

You have a period of 15 days from the date of receipt of the Policy document to review the terms and conditions of this Policy. If you have any objections to any of the terms and conditions, you have the option to return the Policy stating the reasons for the objections and you shall be entitled to a refund of the premium paid subject to a deduction of a proportionate premium for the time on risk that we have borne in addition to the expenses incurred on medical examination (if any) and the stamp charges. Grace Period

If premiums are not paid on its due date, a Grace period of 30 (thirty) days will be allowed for payment of premium without interest. During the grace period the Policy shall continue to be in force for all the Insured events. If the premium is / are not paid within the grace period, the Policy will lapse and be subject to nonforfeiture options (Reduced Paid Up or Guaranteed Surrender Value) if applicable. 1. Paid Up Value If premiums for atleast 3 full years have been paid, and no further due premiums are paid, then the Policy will be eligible for a non-forfeiture benefit which shall be a Paid-up Value. The amount of the Paid-up Value for Death Benefit shall be determined by multiplying the Death Benefit (in case of Primary Life Assured - 50% of the GMB and in case of Secondary Life Assured - 2.5% of the GMB) with the ratio of the number of Regular Premiums paid to the total number of Regular Premiums payable during the Premium Payment Term as shown below: Number of premiums

37

 Paid Up Value for Death Benefit = Number of premiums paid/Number of premiums payable * death benefits ( as applicable) The Guaranteed Maturity Benefits (GMB) are also reduced and is payable on the Policy Maturity Date. The Paid Up Value for GMB is calculated as below: Paid up value for GMB = number of premiums paid/ number of premiums payable * GMB 2. Reinstatement When the premium is not paid within the grace period, the Policy shall lapse and be subject to the applicable non-forfeiture provisions contained in the Policy. The Policyholder may, however, reinstate the Policy while the Person Insured is alive by: Request in writing for reinstatement within five (5) years from the due date of the first unpaid premium. Provides satisfactory evidence of insurability to us. Pays all due premiums to date of reinstatement with interest at the rate prescribed by the Company at the time of reinstatement. Fulfilling the entire reinstatement requirement as specified by the Company.

Guaranteed Surrender Value If all due premiums have been paid for at least 3 full years, the policy would acquire a Guaranteed Surrender Value. The Guaranteed Surrender Value will be equal to 30% of the total amount of premiums paid excluding the premiums for the first policy year and premium for Extra Mortality Rating, if any, less the staggered payouts already paid.

Cash Surrender Value The policy may acquire a Cash Surrender Value if at least 3 full years premiums have been paid which shall, at no point of time, be lesser than the Guaranteed Surrender Value. The Cash Surrender Value will be quoted only on receipt of a surrender request which shall be determined by the Company from time to time and is not guaranteed.

38

Loan There is a policy loan facility which can be availed under this policy after three full years premiums have been paid. For details refer to the terms and conditions.

Exclusions In the event of the Person Insured (Parent) commits suicide for any reason, while sane or insane, within one year from the Date of risk commencement the Policy shall be treated as null and void, no benefit shall be payable under the Policy and all the premiums paid on the Policy shall stand forfeited to the Company. If the person Insured (Parent) commits suicide within one year from the date of reinstatement the surrender value (if any) would be payable. Risk Factors: ING Aashirvad is a Non-Linked, Non-Participating Life Insurance Product. ING Vysya Life Insurance Company Limited is only the name of the Insurance Company and ING Aashirvad is only the name of the product and does not in any way indicate the quality of the product, its future prospects or returns. This product guarantees all the policy benefits; maturity benefit, death benefit and guaranteed surrender benefit. However the benefits are subject to all premiums being paid on time. The purpose of this brochure is only to provide a general overview about this policy. The information herein is indicative of the terms, conditions, warranties and exceptions contained in the policy terms and conditions of ING Aashirvad. Please refer to the policy terms and conditions / rider terms and conditions to understand in detail the associated risks, benefits etc. In the event of any inconsistency / ambiguity between the terms contained herein and the policy terms and conditions, the policy terms and conditions shall prevail. Section 41: Prohibition of Rebate (1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or 39

continuing a Policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or the tables of the insurer. (2) Any person making default in complying with the provision of this section shall be punishable with fine which may extend to five hundred rupees. Section 45- Non Disclosure Under the provisions of section 45 of the Insurance Act, 1938, the company is entitled to repudiate the policy on the ground that a statement made in the proposal or in any report of a medical officer or referee or friend of the insured or any other document leading to the issue of the policy was inaccurate or false, before the expiry of 2 years from the effective date of the policy, and thereafter that if such false or inaccurate statement was related to a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policy-holder and that the policyholder knew at the time of making it that the statement was false or material to disclose.

5. BSLI PROTECTION SOLUTIONS

BSLIS PROTECTOR PLAN
You are successful in your career and your family looks upon you for your support and strength. You have till now given the best to your family. However when it comes to planning for unforeseen circumstances, you need a powerful solution that meets different expectations and gives financial protection to your family. To deal with the uncertainties of life and give your family the best, Birla Sun Life Insurance has come up with the perfect protection solution for you. Introducing the BSLI

40

Protector Plus Plan, a plan with a higher sum assured, so that your family stays protected, even when you are not around

KEY FEATURES OF THIS PLAN Complete financial protection at an affordable cost Hedge against the rising cost of living with an option of increasing Sum Assured Rewards for a healthy lifestyle Enhance your insurance with appropriate rider options Income Tax benefits as per prevailing norms under the Income Tax Act, 1961 18 to 65 years of age I - Level Sum Assured II - Increasing Sum Assured 5 to 30 years, subject to max age on maturity: 75 years Regular Pay Annual | Semi-annual | Quarterly | Monthly Min. Rs. 50,00,000 Max. No Limit (subject to underwriting guidelines) BSLI Protector Plus Plan offers you the freedom to choose your sum assured options at inception depending on your needs. Level Sum Assured With this option, you choose the amount of protection you need at inception. Once chosen, your sum assured will remain constant for the entire policy term. Increasing Sum Assured As you scale new heights in your life, your income rises and so does your responsibilities. With this option, your sum assured increases with your increasing responsibility. You can choose to enhance your sum assured by 5% or 10% at inception depending upon your needs. On every policy

Entry Age Sum Assured Option Policy Term Premium Paying Term Premium Mode Sum Assured

41

anniversary, your sum assured will increase by 5% or 10% of the initial sum assured without any increase in your premium amount. You may choose to pay your premium yearly, half-yearly, quarterly or monthly, as per your convenience. Your annual premium will be multiplied by: o 1.000 for annual installments o 0.519 for half-yearly installments o 0.265 for quarterly installments; or 0.090 for monthly installments For annual and half-yearly installments you can pay your premium by cash (up to Rs. 50,000), cheque, credit card, and direct debit. For monthly and quarterly installments you can pay by salary deduction or ECS only. BSLI Protector Plus Plan offers affordable and guaranteed protection for everyone. It offers an automatic premium reduction for non-tobacco users. Death Benefit In case of the unfortunate demise of the life insured during the policy term, the sum assured depending on choice of sum assured option at inception will be paid to the nominee. The policy shall be terminated once the Death Benefit is paid.

Maturity Benefit In the event the life insured survives to the end of the policy term, no benefit is payable on maturity and the policy shall be terminated thereafter. This plan offers no policy loan, surrender value, or paid-up value

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More Benefits Current Tax Benefits - As per extant tax laws, this plan offers tax benefits under Section 80C, 80D and Section 10 (10D) of the Income Tax Act, 1961. Under Section 80C, premiums up to Rs. 1,00,000 are allowed as a deduction from you taxable income each year Under Section 80D premium paid for riders (Critical Illness, Surgical Care and Hospital Care) upto Rs. 15,000 (Rs. 20,000 in case of senior citizens) is allowed as a deduction from your taxable income each year Under Section 10 (10D), the benefits you receive from this plan are exempt from tax, subject to mentioned exclusions Service Tax and other levies, as applicable, will be extra and levied as per the extension tax law

10. ING CREATING LIFE CHILD PROTECTION PLAN

ING Creating Life Child Protection Plan is Traditional Participating Child Plan. In this plan, the life of the parent is insured for the benefit of the child. In this plan, if the parent dies within the policy matures, the Sum Assured is paid to take care of immediate expenses, the future premiums are

43

paid by the insurer and the policy continues such that the Maturity Benefit is provided to the child. The Sum Assured along with Bonuses are paid on Maturity under all circumstances. Key Features of ING Creating Life Child Protection Plan

This is a Double Death Benefit Plan Sum Assured is paid as Death Benefit, future premiums are paid by the company and the policy continues Sum Assured along with compounded Reversionary Bonus and Final Addition Bonus (if any) would be paid as Maturity Benefit, even if Death Benefit is paid There are 3 options of Maturity Benefit- either in a Lumpsum or 3 or 5 equal installments after the policy maturity date There are 4 riders available with this policy to enhance life coverage

Benefits you get from ING Creating Life Child Protection Plan Death Benefit If the parent dies within the policy tenure, the Sum Assured is paid to take care of immediate expenses and the future premiums are waived off. It is paid by the insurer so as to continue the plan to its maturity such that Maturity Benefit is paid when due. Maturity Benefit On Policy Maturity, Sum Assured + Compounded Reversionary Bonus + Final Addition Bonus (if any) would be paid.

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However, the Maturity Benefit can be provided in 3 options: In a Lumpsum or in 3 or 5 installments after the policy maturity date. Income Tax Benefit - Life Insurance premiums paid up to Rs. 1, 00,000 are allowed as a deduction from the taxable income each year under section 80C. Eligibility conditions in ING Creating Life Child Protection Plan Minimum Sum Assured (in Rs.) Policy Term (in years) Premium Payment Term (in years) Entry Age of Parent (in years) Age at Maturity of Parent (in years) Regular Premium (in Rs.) Payment modes Not Specified 10 Equal to PT 18 8,000 55 65 No Limit 25 Maximum

Yearly, Half-yearly, Quarterly or Monthly

Sample illustration of premium in ING Creating Life Child Protection Plan Premium Paying Term = 20 years, Sum Assured = Rs 5, 00,000

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Additional Features and Benefits of ING Creating Life Child Protection Plan Riders There are 3 additional riders available in this policy Accidental Death Benefit (ADB) Accidental Death, Disability and Dismemberment Benefit (ADDD Benefit) rider Term Benefit rider There is 1 inbuilt rider available in this policy: Premium Waiver Benefit rider What happens if? You stop paying the premium - If the policy holder stops paying the premium, the insurance cover will cease and the policy will lapse. You want to surrender the policy If all due premiums have been paid for 3 policy years; the policy would acquire a Guaranteed Surrender Value. The Guaranteed Surrender Value = 30% of the Total Premiums paid 1st Premium paid and extra Premium paid You want a loan against your policy There is a loan facility available in this plan which can be availed under this policy after three full years premiums have been paid.

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CHAPTER 3

RESEARCH METHODOLOGY

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OBJECTIVES OF THE STUDY:

To study which is the best company among these two, that is most prefer by the customers. To study the buying behavior of customers for Birla sun life products and ING Vysya Life Insurance. To study the satisfaction levels of the customers regarding service of the BSLI & ING Vysya life insurance company. To study the differences of plans provided by these companies to their customers. To study about the growth of these two companies in the short span of time. To study the future plans that are introduced by these companies for their customers. To study which company is providing more beneficial plans.

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RESEARCH DESIGN:Research is the process of systematic and in-depth study or research for any particular topic, subject or area of investigation, backed by collection, compilation, presentation and interpretation of relevant details or data. It is a careful search or inquiry into any subject or subject matter, which is an endeavor to discover or find out valuable facts, which would be useful for further application or utilization. Research may involved a scientific study or experimentation and result in discover or invention, which would aid ethics scientific development or decision making. It may also established relationship between variable and identified the ways and means for problem solving. In this project Exploratory Research has been used: Exploratory or formulate research Exploratory research is a primary study of subject matter or investigation of the phenomena. It is not specific in nature but aims at understanding the broad contours of the subject. It is usually preliminary or pilot study and is followed by descriptive, experimental research. It does not have a formal and rigid design and as the research may have a formal and rigid design and as the research may have to change his focus or direction, depending on the availability of new ideas, new hypothesis, increasing the familiarity with the problem, assessing the feasibility of further studies etc.

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SAMPLING AND SAMPLE DESIGN

Sampling may be defined as a selection of some part of an aggregate on the basis of which a judgment about the aggregate is made. In other words it is the process of obtaining information about an entire population by examining on the part of it. Sample should be truly representative of population characteristics without any bias so that it may result in valid and reliable conclusion. In the project the marketing and market research, which was ask to be studied was Chandigarh but as it was not possible to approach all the respondent of the city, hence a sample was selected which represents the whole city. The areas selected for the sample are present further in the appendix.

IMPORTANCE OF SAMPLING:1. Sampling safe time & money. A sample study is usually less expensive that census study. Sampling enable more accurate measurement for a sample study is generally conducted by trained and experienced investigators. 2. Sampling remains the only way when population contains infinitely many members. 3. Sampling remains the only choice when a test involves the destruction of the items under study. 4. Sampling usually enables to estimate the sampling errors and, thus, assists in obtaining information concerning some characteristics of the population.

SAMPLE DESIGN
A Sample design is a definite plan for obtaining a sample from the sampling frame. It refers to the technique the researcher would adopt in selecting some sample unit from which inferences about the population is drawn. Sampling is determined before any data are collected. The sampling technique used in this project work is Convenience Random Sampling. It indicates the number of individuals who would be surveyed. Here the sample size is 100 respondents. Sample area: Ambala Cantt

DATA COLLECTION\

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 SECONDARY DATA Secondary data, is data collected by someone other than the user. Common sources of secondary data for social science include censuses, organizational records and data collected through qualitative methodologies or qualitative research. Primary data, by contrast, are collected by the investigator conducting the research.

PRIMARY DATA
Primary research consists of the collection of original primary data. It is often undertaken after the researcher has gained some insight into the issue by reviewing secondary research or by analyzing previously collected primary data. It can be accomplished through various methods, including questionnaires and telephone interviews in market research, or experiments and direct observations in the physical sciences, amongst other

LIMITATIONS OF STUDY
Its very difficult to collect data from customers because no one was easily ready to give their view or details. The sample was restricted to 100 customers, which may restrict the scope and completion of study. People dont have appropriate knowledge of more market based investment plans. Method of data collection was through personal interview and therefore bias becomes a major limitation. Time for this survey is quite short so it is not possible to cover data from each and every unit of the sample size. In some plans there were very minor differences so its being difficult to make decisions that which one is better.

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CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

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1.According to you which is the best sector for making investments? Table:4.1 Best sector for making investments Banks Share market Insurance Real Estate 39% 12% 31% 18%

Figure:4.1
40% 35% 30% 25% 20% 15% 10% 5% 0% Banks Share market Insurance Real Estate

Interpretation:Figure 4.1 illustrates that most of the respondants i.e.39% think that banking sector is the best sector for investment. 31% like to invest in insurance sector. 12% are interested in share market and rest 18 % are interested in real estate investments.

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2. Do you know how many companies are working in insurance sector in India? Table:4.2 No. of companies working in insurance sector in India. 18 22 20 20% 53% 27%

Figure: 4.2
60% 50% 40% 30% 20% 10% 0%

Interpretation:Figure 4.2 illustrates that according to 20% peoples there are 18 companies indulge in insurance sector. Major part i.e. 53% thinks that there are 22 companies working under insurance sector anrd 27% think that 20 companies are performing in the sector of insurance.

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3. Are you aware about Birla Sun Life Insurance Company ltd and ING Vysya life insurance company ltd? Table:4.3 Awareness about Birla Sun Life Life Insurance Company ltd and ING Vysya life insurance company ltd Yes No 68% 32%

Figure:4.3

70% 60% 50% 40% 30% 20% 10% 0% Yes No

Interpretation:Figure 4.3 illustrates that 68% peoples are aware about these two companies where as 32% people have not heard of these two companies.

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4. If yes then how do you come to know about these two? Table:4.4 How do they came to know about these two. T.V or media Friends or relatives Agents or advisors Others 19% 49% 13% 19%

Figure 4.4 50% 40% 30% 20% 10% 0% T.V or media Friends or relatives Agents or advisors Others

Interpretation:-

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Figure 4.4 illustrates that 19% of persons are come to know about these by TV or media. Where as 49% are come to known by friends or relatives and 13% through agents or advisors .and rest 19% are known of these by others sources.

5. Do you have any insurance policy in BSLI Co. ltd & ING Vysya Life Insurance Co. ltd? Table:4.5To know if they have have any insurance policy in BSLI Co. ltd & ING Vysya Life Insurance Co. ltd With BSLI With ING Vysya With both With others 34% 12% 8% 46%

Figure:4.5

50% 40% 30% 20% 10% 0% With BSLI With ING Vysya With both With others

Interpretation:-

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Figure 4.5 illustrates that 34% peoples are getting insured with BSLI where as 12% get insured with ING Vysya life insurance. 8% peoples were get insured by both the above two companies. And rest of the 19% are get insured with other companies.

6. Do you think that BSLIs services are better as comparison of ING VYSYA Life Insurance co.? 1. Table:4.6 To know that BSLIs services are better as comparison of ING VYSYA Life Insurance co. Yes No 87% 13%

Figure:4.6

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No

w Interpretation:-

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Figure 4.6 illustrates that majority i.e. 87% peoples were thinking that BSLI is providing better services. And other 13% peoples were thinking that ING Vysya life insurance is providing better services.

7.What are factors that affect you the most regarding the selection of the plans of these two companies? Table:4.7 Which factors affect the most regarding the selection of the plans of these two companies Rate of return Affordable premium Low premium allocation charges surrender value All of the above 33% 31% 19% 16% 9%

Figure:4.7
Rate of return 35% 30% 25% 20% 15% 10% 5% 0% All of the above Affordable premium Low premium allocation charges surrender value

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Interpretation:Figure 4.7 illustrates that 33% peoples like rate of return where as 31% peoples were like affordable premium. 19% peoples were going for low premium allocation charges. Few i.e. 16% peoples were like surrender value and rest of the 9% are in favour of all.

8. Do you think that BSLI plans are more beneficial than the ING Vysya Life Insurance plans? Table:4.8 To know think that BSLI plans are more beneficial than the ING Vysya Life Insurance plans. Yes No 77% 23%

Figure:4.8

80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No

Interpretation:Figure 4.8 illustrates that most of the people i.e. 77% peoples liked BSLI plans and rest 23% liked ING Vysya life insurance plans.

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9. According to you which of these two companies is providing better after sales Services? Table:4.9 To know which of these two companies is providing better after sales Services BSLI Co. ltd. ING Vysya Co. ltd. 81% 19%

Figure:4.9

100% 80% 60% 40% 20% 0% BSLI Co. ltd. ING Vysya Co. ltd.

Interpretation:Figure 4.9 illustrates that majority i.e. 81% persons liked BSLIs after sales services and rest 19% persons liked ING Vysyas sales services.

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10. In last financial year, BSLI was at 7th position but its current position is 3rd, so do you Think that it will be the top insurance company in private sector in this financial Year? Table;4.10 To know whether BSLI will be the top insurance company in private sector in this financial Year. Yes No 59% 41%

Figure;4.10

60% 50% 40% 30% 20% 10% 0% Yes No

Interpretation:-

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Figure 4.10 illustrates that majority 59% were thinking that BSLI will be the top most private insurance company in coming days where as 41% is still not satisfied with this statement.

11. If you are given an opportunity then which insurance company would you like to? Table:4.11 To know which insurance company do youi prefer. BSLI ING Vysya Life Insurance Others 34% 11% 55%

Figure;4.11
60% 50% 40% 30% 20% 10% 0% ING Vysya Life Insurance Others BSLI

Interpretation:-

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Figure 4.10 illustrates that 34% peoples go to invest in BSLI and 11% prefers ING Vysya life insurance and rest 55% are go for others.

12. What do you think which company among these two is providing more additional benefits, like Riders, loans etc.? Table;4.12 To know you think which company among these two is providing more additional benefits, like Riders, loans etc. BSLI ING Vysya Life Insurance 61% 39%

Figure:4.12

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70% 60% 50% 40% 30% 20% 10% 0% BSLI ING Vysya Life Insurance

Interpretation:Figure 4.10 illustrates that61% people are believes that BSLI provides more additional benefits and rest 39% are in favour of ING Vysya Life Insurance.

CHAPTER 5

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FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS:

BSLI is having around 600 branches and ING Vysya life insurance is having 300 branches in all over the India. People know more about BSLI as comparison with ING Vysya life insurance. Both BSLI and ING Vysya life insurance is commenced in 2001 but BSLI I is achieved more than the ING Vysya in short span of time. People are more satisfied with the BSLIs after sales services as comparison to ING Vysya life insurance. 34% people preferred BSLI to invest if they get opportunity in future and 11% prefer ING Vysya. 59% people are thinking that in coming years BSLI will be the top most private insurance company among all companies..

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 61% people think that BSLI is providing more additional benefits as comparison to the ING Vysya Life Insurance.

SUGGESTIONS

Advertisement should be done by these two companies in order to make faith among customers regarding private companies. More of endownment or guranteed plans should be introduced by these companies in order to increase their sales prospects. Timely feedback should be taken from customers and also take care of their queries by both the companies. ING Vysya life insurance should need to make strong strategy and plans in order to compete with BSLI. Both the companies should provide more information to the customer so that they become more aware about their plans and policies. People get aware of their plans and they will choose plans according to their suitability.

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ING Vysya Life Insurance should need to offer some more additional benefits on their policies.

CONCLUSION

Birla Sun Life Insurance is one of the top Private Life Insurance selling company among 22 other companies. With in 10 yrs of its life, it has managed to reach at no. 3 rd position. BSLI was the first company who has introduced the ULIP plans in market and also the one who has started the illustration process in Insurance Industry. ING Vysya Life Insurance Company Pvt. Ltd ING Vysya Life Insurance Company Limited (ING Life) part of the ING Group entered the private life insurance industry in India in September 2001. Headquartered at Bangalore, ING Life is staffed by 7,926 employees and over 75,926 advisors, serving 8.12 lakh customers.

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The study aimed to know the customers preference between plans of BSLI and ING Vysya life insurance and their services. It was found that due to some evils of past, insurance sector has earned badwill. But slowly- slowly people are developing wide vision for insurance. The project analysis of Customers preference for products of BSLI and ING Vysya life insurance tells us that the risk appetite of people is average. People have more faith in traditional plans than ULIPS. The main reason behind that is the incomplete knowledge of market and plans. Very few customers know about the guaranteed ULIP plans which assure the sum of money after a stipulated time. But as 34% people are still interested in making investment in BSLI and 11% are interested in ING Vysya life insurance so it may taken as a positive ray for both the companies and might be these companies will succeed more and more in future.

BIBLIOGRAPHY

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BIBLIOGRAPHY:
BOOKS:o INSURANCE - Fundamentals, Environment and Procedures B.S.Bodla, M.C.Garg & K.P.Singh 2003 (Paperback) o Insurance - Law and Practice C.L.Tyagi & Madhu Tyagi 2007

WEBSITES:o Insurance.birlasunlife.com o www.linkedin.com/title/executive/at-birla-sunlife-insurance o www.adityabirla.com/our_companies/.../birlasunlife_insurance.htm o www.inglife.co.in o www.bangaloreone.gov.in/public/ingvysya-info.aspx o en.wikipedia.org/wiki/ING_Life_India

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ANNEXURE

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QUESTIONNAIRE
1.According to you which is the best sector for making investments? (a) Bank (b) Share market (c) Insurance (d) Real Estate 2. Do you know how many companies are working in insurance sector in India? (a) 20 (b) 18 (c) 22 3. Are you aware about Birla Sun Life Insurance Company ltd and ING Vysya life insurance company ltd? (a) Yes (a) TV or media (b) Friends or relatives (c) Advisors or agents (d) Others 5. Do you have any insurance policy in BSLI Co. ltd & ING Vysya Life Insurance Co. ltd? (a) With BSLI (b) With ING Vysya life insurance (c) With both (d) With others 6. Do you think that BSLIs services are better as comparison of ING VYSYA Life Insurance? (a) Yes (a) Rate of return (b) Affordable premium (c) Low premium allocation charges (d) Surrender value (b) No 7. What are the factors that affect you the most in the selection of the plans of these companies? (b) No 4. If yes then how do you come to know about these two?

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(e) All of the above 8. Do you think that BSLI plans are more beneficial than the ING Vysya life Insurance plans? (a) Yes (a) BSLI co. ltd (b) No (b) ING Vysya life insurance co. ltd 9. According to you which of these two companies is providing better after sales Services? 10. In last financial year, BSLI was at 7th position but its current position is 3rd, so do you think That it will be the top insurance company in private sector in this financial year? (a) Yes (c) Cant say 11. If you are given an opportunity then which insurance company would you like to prefer? (a) BSLI (c) Others 12. What do you think that which company among these two is providing more additional Benefits? (a) BSLI (b) ING Vysya Life Insurance (b) ING Vysya life insurance (b) No

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